[fjtorres]

Product shortages do not always imply high demand; it can be due to bad logistics, bad planning, component shortages, earthquakes...

The best test of the general desirability of last year's Sony readers comes from Sony itself: two models cancelled without announced replacement, one redesigned for price reduction.

Also note that the two specialty models that appeal to enthusiasts, the ultra-portable 5" and larger 7" are the cancelled ones, while the T1 is clearly aimed at the price-sensitive mass market, what with its focus on library and free Google books.

So, does Sony need to compete on price?
*They* think so.